Juul to Cut 50% of Staff Due to US Flavor Ban
Last week, Juul Labs Inc. announced plans to cut more than half of its workforce, affecting about 1,200 employees. A Juul spokesperson said no final decision had been made and that the company was still evaluating its options. The company is also consider
Last week, Juul Labs Inc. announced plans to cut more than half of its workforce, totaling about 1,200 employees. A Juul spokesperson said, “No final decision has been made yet, and we will continue to evaluate.”
The company is also considering halting sales in Europe and Asia. Withdrawing from these regions would mean stopping sales in up to 11 countries, narrowing the startup's business focus to its core markets: the United States, Canada, and the UK. Juul explained that the returns from certain European and Asia-Pacific markets do not justify the need for additional investment. Earlier this year, it exited South Korea after losing appeal.
As of 2019, the San Francisco-based company employed about 4,100 people. However, in November, it announced plans to cut about 500 jobs, which is believed to account for 10% to 15% of its total workforce. CEO KC Crosthwaite stated, “This restructuring will help Juul Labs focus on reducing underage use, investing in scientific research, and creating new technologies while obtaining operating licenses in the U.S. and globally.” This was mentioned in a statement last November.
Additionally, in the coming months, Juul announced it would stop selling its flavored pods (except for mint and menthol). Juul spokesperson Austin Finan said at the time, “We will continue to review our policies and practices ahead of the FDA's flavor guidance, and no final decisions have been made yet. We will not lobby the government to draft its flavor guidance and will fully support and comply with the final policy when effective.” The manufacturer has also reduced its marketing budget and invested heavily to limit underage smoking.
Meanwhile, in the U.S., sales of e-cigarettes have been declining due to ongoing scrutiny and misinformation surrounding the industry. Juul stated in a blog, “It seems easier to sell combustible cigarettes than vapor products now.”
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